General analysis about forex market: 28th November – 2nd December
EURUSD technical analysis
In the last week, the EURUSD pair has shown nice sign of recovery after hitting the critical support level at 1.05181.This level is going to play a significant role in the next move of the EURUSD pair since the pair has tested this critical support level previously on 3rd December 2015.The daily stochastic is in the extremely oversold region which strongly favors the bullish price action confirmation signal on the daily chart. On the contrary, a doji if formed on the weekly chart which indicates the market is still in indecision and yet not ready to move up. The weekly RSI also suggest that the fall of the EURUSD pair has not yet been completed yet as the RSI is not in the oversold region. However, if the pair manages to climb up then the first bullish resistance for the EURUSD pair would the critical resistance level at 1.08484.A clear break of that level will bring fresh buying pressure in the market.
There are two important economic events in the upcoming week. On Monday ECB President Mario Draghi is going to deliver his speech at the press conference. If he comes out with a solid plan to recover the current loss of their economy then the EURO might get fresh buying pressure in the market. On the contrary, the Non-firm payroll data is also going to affect the market to a great extent. A positive data will wash away all the bullish momentum of the EURUSD pair whereas a negative data will bring fresh buying pressure. The overall sentiment for the EURUSD pair still remains bearish even though the pair has formed bullish morning star at the critical support level. In the past EURO has difficulty to trade at such a low level therefore if we get a bullish weekly signal in the upcoming week then we might see some correction in the EURUSD pair towards the next critical resistance level at 1.08512.
GBPUSD technical analysis
The Great Britain Pound has shown nice sign of recovery in the last couple of weeks after incurring huge losses in the Brexit event. After hitting the critical bottom level at 1.20118 the pair found some support in the market and made its first bullish correction towards the critical resistance level at 1.26718.From that level, the pair dropped towards the minor support level at 1.23380.In the last week, the Great Britain pound formed a bullish engulfing pattern at the critical support level at 1.23380 and started exhibiting fresh buying momentum in the market. The first bullish target for the GBPUSD pair would the next critical resistance level at 1.26718.A valid break of that level will bring strong bullish momentum in the market which will ultimately lead this pair towards the next critical resistance level at 1.29701.The pair will find immense selling pressure from that level and professional price action traders will execute their short order in the market with bearish price action confirmation signal.
There is no important major economic news event for the Great Britain pound in the upcoming weeks. However, the ADP non-firm payroll data is going to affect the forex market significantly. If the data comes out better than expected then all the bullish momentum in the GBPUSD pair will be washed away. On the contrary, if the data comes negative then we will see fresh buying pressure in the GBPUSD pair which will ultimately drive the price towards the next critical resistance level at 1.26718.Considering all the parameter the overall bias remains positive for the GBPUSD pair and most probably we are going to see some buying pressure from the very beginning of the week.
USDJPY technical analysis
There has been a strong rally in the USDJPY pair after the U.S presidential election on 8th November 2016.After hitting the critical support level at 99.03 the pair managed to find fresh buying pressure in the market which triggered the bullish correction the pair. Currently, the pair is testing critical resistance level at 113.849.Last week the pair closed forming doji in the daily chart and traders are cautiously waiting for the bearish candlestick confirmation to execute their short order in the market. If the sellers manage to take control of the USDJPY then the first bearish target for the USDJPY pair would be critical resistance level at 111.316 level. A valid break of that level on a daily closing will bring further downward momentum in the market which will eventually target the next critical support level at 107.465.
The upcoming week has very little to do with the USDJPY pairs since the major news releases are at the end of the week. If the ADP nonfarm payroll data come negative in the upcoming week then we will be seeing a nice bearish correction in the USDJPY pair. On the contrary, if the data comes better than anticipated then we will be seeing another strong bullish rally in the USDJPY pair. The first bullish target for the USDJPY pair would be the critical resistance level at 116.843.A valid break of that critical resistance level will bring another sharp rise in the price towards the next critical resistance level at 118.45 level. Considering all the parameter the USDJPY pair is slightly bearish and traders are expecting minor bearish retracement in the pair. However, before entering short in the USDJPY pair it is highly recommended to use bearish price action confirmation signal on the daily chart. In the eyes of trained professional e strong rally requires pin perfect execution of the trade order. So if you are not a professional trader it’s better to remain on the sideline until the market offers better trading opportunity.